Bitcoin options traders reduce downside hedges ahead of Fed meeting

Odaily reported that Bitcoin options traders have significantly reduced their downside hedges since late June, with the put/call open interest ratio dropping from 0.76 to approximately 0.52. Short-term options indicate that traders' demand for near-term protection is lower than that for options with 3 to 6-month maturities, suggesting they anticipate a relatively calm market this week while still hedging against volatility later in the year. Implied volatility across all tenors remains low, and the term structure is sloping upward. If the Federal Reserve's interest rate decision or projections on Wednesday exceed investor expectations, the market has limited buffer room. (CoinDesk)